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>Therefore, if you are OpenAI, Anthropic, or another AI vendor, you have two choices. Your first is to spend enormous amounts of money to stay ahead of the mark
by MangoCoffee 2y ago
>Therefore, if you are OpenAI, Anthropic, or another AI vendor, you have two choices. Your first is to spend enormous amounts of money to stay ahead of the market. This seems very risky though
Regarding point 6, Amazon invested heavily in building data centers across the US to enhance customer service and maintain a competitive edge. it was risky.
This strategic move resulted in a significant surplus of computing power, which Amazon successfully monetized. In fact, it became the company's largest profit generator.
After all, startups and businesses is all about taking risk, ain't it?
- donavanm 2y agoNo, this an incorrect analogy on most points. Amazon retail marketplaces are absolutely not correlated with distributed data centers. Most markets are served out of a single cluster, which is likely to be in a different country; eg historically all of Europe from dublin, the americas from virginia, and asia pacific from seattle/portland. The move of the retail marketplace hosting from seattle to virginia happened alongside, and continued long after, the start of AWS. It is an utter myth, not promoted by Amazon, that AWS was some scheme to use “surplus computing power” from retail hosting/operations. It was an intentional business case to get in to a different B2B market as a service provider.
- lukev 2y agoYes, the "surplus compute power" story doesn't hold water. The magic of AWS is in its software and control plane.